cannabis operator PharmaCielo Ltd. (TSXV: PCLO) (OTCQX: PCLOF) announces that it has completed a $5 million debt financing round and plans to issue up to $10 million more through debentures.
On Friday, the Toronto-based company with its primary operations in Colombia released an update on recent international transactions, while confirming that it had completed a non-brokered private placement of debentures announced on Dec. 31.
PharmaCielo says it is currently negotiating a raise on or before March 4 for a total of $15 million. Each debenture unit is worth $1,000 in 11% secured debentures and 250 common share purchase warrants.
Each unit entitles the holder to one common share of PharmaCielo at $1.44 per ordinary share up to December 24, 2024, with an annual interest of 11%.
The debentures are secured by mortgages on the physical assets of the business.
PharmaCielo will develop the first two Argentinian medical cannabis products
PharmaCielo says it is working with an anonymous Argentine pharmaceutical company to launch the first two medical cannabis products made in Argentina. The first is for the treatment of seizures in patients with severe seizure disorders such as Lennox-Gestaut syndrome and Dravet syndrome.
The second is a topical cannabidiol cream, with first shipments already sent to a customer and more to follow throughout the year. The company says it is negotiating a multi-year sales agreement.
Read more: PharmaCielo Obtains High-THC Export Quota from the Colombian Government
Read more: PharmaCielo rebounds after announcing lowest legal production costs in the world
In Brazil, PharmaCielo is working with an anonymous herbal medicine company to register a product with the Brazilian Health Regulatory Agency (ANVISA) in order to sell products in the domestic market.
Brazil’s industry is one of the fastest growing in the region, as cannabis patients have quadrupled in the past two years, from 5,000 to 20,000.
PharmaCielo sent several shipments of its active pharmaceutical ingredients to the Brazilian company and announced that it would formalize a sales agreement once the product is approved and launched.
Read more: Colombia begins process to regulate export of medical cannabis flowers
Read more: Colombia orders all medical insurance providers to cover cannabis
The company’s international presence has also expanded to Paraguay, where it conducts research and development work under contract with another anonymous pharmaceutical company.
“The pharmaceutical industry represents one of the greatest long-term opportunities for suppliers of active pharmaceutical ingredients, as sophisticated players in this global industry begin to develop cannabinoid-based products over the next few years,” CEO Bill Petron said in a statement. declaration.
“PharmaCielo has all the necessary capabilities to become a valuable long-term partner for these organizations, and we have made Latin America the dynamic pharmaceutical and wellness sector is a key area for investment.
Petron says he expects short-term revenue from relationships with other Latin American operators that would help his company focus on other areas such as developing high-potency dried flower products. THC and THC distillates.
Follow Natalia Buendia Calvillo on Twitter